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Changing Household Demand Patterns in the Netherlands: some explanations

Author

Listed:
  • Adriaan Kalwij

    (Faculteit Recht Economie Bestuur en Organisatie, Departement Economie (USE), Universiteit Utrecht)

  • Wiemer Salverda

    (AIAS, Universiteit van Amsterdam)

Abstract

We examine in detail the changes in household expenditures patterns, and in particular services related expenditures, in the Netherlands over the years 1979, 1989 and 1998. Using Engel curve estimations, these changes are related to changes in household demographics, employment, the budget and relative prices. We find that the dominating changes in demand are decreasing shares of expenditures on food and clothing and an increasing share of expenditures on housing. We show that the decrease in food expenditures is for a large part explained by changes in household characteristics and the budget and about a third is a price effect. The increase in housing expenditures share is predominantly a price effect. Excluding expenditures on housing, health and education and durables, the increase in the budget share of all services is 13.6 %-points. We show that 2.7%-points of this increase is explained by demographic changes and 2.9%-points by price changes. Changes in the employment structure and the budget explain relatively little changes (0.3%-points), leaving 7.7%-points unexplained.

Suggested Citation

  • Adriaan Kalwij & Wiemer Salverda, 2004. "Changing Household Demand Patterns in the Netherlands: some explanations," DEMPATEM Working Papers wp3, AIAS, Amsterdam Institute for Advanced Labour Studies.
    • Handle: RePEc:aia:dempat:wp3
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    References listed on IDEAS

    as
    1. Adriaan Kalwij & Rob Alessie & Peter Fontein, 1998. "Household commodity demand and demographics in the Netherlands: A microeconometric analysis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(4), pages 551-577.
    2. Laura Blow & Adriaan Kalwij & Javier Castillo, 2004. "Methodological issues on the analysis of consumer demand patterns over time and across countries," DEMPATEM Working Papers wp9, AIAS, Amsterdam Institute for Advanced Labour Studies.
    3. Victor R. Fuchs, 1968. "The Service Economy," NBER Books, National Bureau of Economic Research, Inc, number fuch68-1, March.
    4. Adriaan Kalwij & Steve Machin, 2004. "Changes in Household Demand Patterns: A Cross-Country Comparison," DEMPATEM Working Papers wp8, AIAS, Amsterdam Institute for Advanced Labour Studies.
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